How can I adjust this padding to make it closer?

Hi there,

The padding you see is the site-wide padding for the content on Appearance > Customize > Layout > Container.

Currently, the content padding has a top value of 50px. You can reduce it to a smaller value or set 0 so the space is reduced.

Alternatively, you can go with custom CSS:

div#content {
    padding-top: 10px;
}

But the Container option on customizer settings is recommended for uniformity.:D